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Is VAT applicable when chartering a private jets?

Tuesday 26 March 2019 Blog

When you charter a private jet for your flight, there are some fees that needs to be paid to the government. One of them is the VAT, the Value added Tax.

It is a complicated tax system created by European bureaucrats that is applied more or less uniformly across Europe.

Fast Private Jet is charged at the customer’s place, and then the fee is applied to the quotation. Generally speaking, when no exemption applies, VAT is applicable for all domestic flights, means flight within the same country such as Paris to Nice, Berlin to Munich, Rome to Milan…

Italy

10%

 

Spain

10%

 

Austria

13%

 

United Kingdom   

20%

 

The Netherlands   

21%

Germany

19%

 

France

10%

 

It is important to highlight as well that in Italy has been established since April 2012 the Italian Tax Pax (known also as Italian Luxury Tax). It’s an amount charged to the operator for

every passenger for every movement from and to any city within the Italian territory.

The tax is due by each passenger and paid to the operator as follows:

• euro 10 for each passenger for each flight of less than 100 km to, from or within the Italian territory (targeted primarily at helicopter transportation services)

• euro 100 for each passenger for each flight of more than 100 km but less than 1500 km to, from or within the Italian territory

• euro 200 for each passenger for each flight to or from the Italian territory in excess of 1500 km

For example, a chartered aerotaxi from London to Milan Linate with 6 passengers. The flight would be subject to € 600 of Italian passenger tax (when landing in Italian territory). The return flight from Milan to London would be subject to another €600 Italian passenger tax (leaving the country). A total of €1,200 for Italian tax pax, but VAT won’t be applied in this case as the flight is between 2 countries.   

France also apply a similar tax system of the amount of about €11 per passenger, applied only when leaving the country.

UK has also the so called Her Majesty Revenue & Customs tax of the amount of approximately €30 per passenger when leaving the country.

Please note that these fees are applied only when an aerotaxi has been chartered.

Under government tax rules, individuals and companies are entitled to reclaim VAT on purchases and running costs of private jets if they are used for the activity or company’s business purposes.

Please note that some Member States apply limitations to this right to deduct input VAT.

We know this topic might seem hard and complicated. We are happy to clarify any aspect of the tax and VAT regulations for you with precision and transparency.

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